Encompass Design India Limited has secured Board approval for a preferential allotment of up to 38,10,000 equity shares at an issue price of ₹250 per share, aiming to raise ₹95.25 crore in fresh capital. The decision, taken during a Board meeting held on July 22, 2026, involves issuances to both promoter and non-promoter categories, signaling confidence in the company’s growth trajectory and strengthening its financial position for future expansion. This fundraising exercise requires subsequent approval from shareholders and the stock exchanges before implementation.

The preferential issue falls under Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and complies with the Companies Act, 2013. The relevant date for determining the floor price under SEBI ICDR Regulations was July 17, 2026. The equity shares have a face value of ₹10 each, with a premium of ₹240 per share. The Board also approved the notice for the Extra-Ordinary General Meeting (EGM), where shareholders will vote on the allotment. Mr. Shanu Bhagwandas Mata, a practicing Company Secretary, was appointed as the scrutinizer for the E-voting process.

Investor Participation

The allotment targets a mix of institutional funds and individual investors, including key promoters. Aikyata Advisory LLP leads the non-promoter subscription with 10,00,000 shares, followed by Krunal Parmar with 9,80,000 shares. Promoter group members, including Chairman & Managing Director Amit Rajendraprasad Dalmia, are also participating significantly.

Post-Issue Shareholding Impact

The preferential allotment will alter the shareholding pattern, with promoter holdings consolidating further. Amit Rajendraprasad Dalmia’s stake is expected to rise from 51.18% to 42.57% post-allotment, reflecting dilution due to new issues but maintaining control. Non-promoter investors like Aikyata Advisory LLP will hold 5.56% of the post-issue capital.

What the Numbers Show

The issuance price of ₹250 per share suggests a valuation benchmark set by the Board based on the relevant date of July 17, 2026. The significant participation from existing promoters indicates their commitment to the company’s long-term vision, while the entry of new non-promoter entities like Saint Capital Fund and M7 Global Fund reflects external investor interest. The total raise of ₹95.25 crore provides substantial liquidity for operational scaling or debt reduction, though specific utilization details were not disclosed in this filing.

Encompass Design India Limited has incorporated a new subsidiary, The Longevity Plan Private Limited, effective July 08, 2026, to diversify its business operations into the pharmaceutical and nutraceutical industry. The strategic move aims to expand the company's current business scope by developing, marketing, and distributing nutraceuticals, dietary supplements, and health and wellness products. The subsidiary will also engage in research and development, brand development, and digital health solutions through online and offline channels.

The incorporation was completed pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015, and relevant SEBI circulars. The Certificate of Incorporation was issued by the Registrar of Companies on July 08, 2026. The transaction falls under related party transactions, with the promoter group holding an interest, though it was conducted at arm's length.

The Longevity Plan Private Limited has been incorporated with an authorized capital of INR 15,00,000 and a paid-up share capital of INR 60,000. Encompass Design India Limited subscribed to 4,000 equity shares of INR 10 each at a cash consideration of INR 40,000, acquiring a 66.67% stake in the entity. The subsidiary is yet to commence business operations.

Key Details of the Subsidiary

The subsidiary's operations will focus on preventive healthcare and allied wellness services. The company has confirmed that no specific governmental or regulatory approvals were required for the incorporation, and the transaction was funded entirely through cash subscription to the share capital.